BATON ROUGE, La. – The NFIB Small Business Optimism Index increased 0.5 points in August to 100.8, nearly three points above its 52-year average, according to the organization’s latest survey.
The rise was driven largely by stronger sales expectations, with the net percent of owners anticipating higher real sales volumes up six points to 12%. The Uncertainty Index declined by four points to 93, though it remains elevated compared to historical trends.
“Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings,” said NFIB Chief Economist Bill Dunkelberg. “While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street.”
Labor quality continued to be the single most important problem for small business owners, cited by 21% of respondents. Thirty-two percent reported job openings they could not fill, the lowest since July 2020, with the shortage most acute in construction, manufacturing and transportation.
NFIB State Director Leah Long said Louisiana businesses echoed the national trend. “Sales are improving, but many businesses are still having a tough time finding workers with the right qualifications,” she said.
Other findings from the August report include:
- Fourteen percent of owners rated their business health as excellent and 54% as good.
- The share of owners raising average selling prices fell three points to 21%, the lowest reading this year.
- Reports of positive profit trends improved three points to a net negative 19%, the best since March 2023.
- The average short-term loan rate declined to 8.1%, the lowest since May 2023.
- A net 15% of owners plan to create new jobs in the next three months, the third consecutive monthly increase.
- More than half of owners reported supply chain disruptions, though the share was down 10 points from July.
The survey, conducted in August, has tracked small business economic trends monthly since 1986.